Mitt Romney has so far released only one year of tax returns (2010), plus an estimate for 2011. This stands in stark contrast to his father, Michigan Governor George Romney, who released 12 years of tax returns when he began running for President in 1967. As his father said at the time, "One year could be a fluke." So the questions remain about what is in Romney's older returns.

Two stories this week and last have ratcheted up the pressure. One is a recent web exclusive for "The Last Word with Laurence O'Donnell" where David Cay Johnston has five questions for Romney that can only be answered with his tax returns. The other is a blockbuster story by Nicholas Shaxson (h/t TPM) in the new Vanity Fair on the shadowy world of Romney's tax havens. Together, they put a laser-like focus on the finances of the man who could become our 45th President.

Johnston is a well-known former New York Times reporter, Pulitzer Prize winner, and the author of the major books Perfectly Legal and Free Lunch. If you don't have time to watch his 3:45 video, here are the five questions:

"1. Did you buy any illegal or gray area tax shelters? "2. Did an IRS audit ever uncover serious problems with any of your tax returns? "3. Did you make use of offshore vehicles to defer, or avoid paying, federal income taxes? "4. Did you take advantage of any tax strategies that the IRS did not uncover in audits? "5. Did you fully tithe to the Church of Jesus Christ of Latter Day Saints every year and take a deduction on your tax return that shows that?"

These are important questions. We know that Governor Romney has had a Swiss bank account, as well as money in other tax havens like the Cayman Islands, Luxembourg, Bermuda, and Ireland. Romney's answer to any question about his taxes has basically been, "Trust me." But the guy's running for President, for Pete's sake. He owes us more than that.

Shaxson, a researcher for the Tax Justice Network and author of the book Treasure Islands, asks us to consider the possibility that maybe not everything Romney has done tax-wise has been legal. He opens with a story told by a former Bain employee about how Romney encouraged him to lie to get secret information on competitors. There is, of course, the fact that Romney has funds parked in numerous tax havens and the fact that his supposedly "blind" trust invested in a business started by Romney's son Tagg, and the fact that he has $102 million in his IRA despite a contribution limit of $2000 per year for the entire 15 years Romney ran Bain. Obviously nothing to see here...

The standard answer of the Romney campaign to all this is that he always followed the law. As Jon Stewart had to point out since the major media did not, Romney did plenty to affect the law he was supposedly "just following," including his defense of the "covered carried interest" tax loophole that let him treat his fees at Bain as if they were capital gains (15% tax) rather than wages (35% tax). All perfectly legal and as Johnston points out in his book by that name, that is the real scandal.

Further, Shaxson reveals that an early filing of the original Bain Capital fund in 1984 showed that many of its foreign investors were routed through tax havens and that at least one was a notorious financial criminal, Robert Maxwell. Thus, Bain helped foreigners take advantage of the fact that the United States has set itself up as a tax haven for non-citizens (see also Jason Sharman's paper on setting up anonymous companies in the U.S. and elsewhere; h/t Robert Kudrle). Shaxson quotes Rebecca Wilkins of Citizens for Tax Justice, “It is shocking that a presidential candidate should think that is O.K.” for Bain to service the likes of Robert Maxwell.

The bottom line is that there is a lot of unsettling information in what investigators have so far been able to piece together about Romney's finances. The easiest way for Governor Romney to put to rest what his campaign described to Shaxson as "unfounded allegations and insinuations" would be to release his tax returns. Yet he has not done so and shows no sign of changing his mind. Josh Marshall calls the questions "kryptonite" and thinks Romney will come under a lot of pressure to release more tax returns. Let's hope so. The guy's running for President, for Pete's sake.

Point 3 asks whether he used offshore vehicles to defer or avoid federal taxes. Yes, that's the point of these instruments, to defer or avoid taxes in a legal manner, which distinguishes it from tax evasion.

“These are important questions. We know that Governor Romney has had a Swiss bank account, as well as money in other tax havens like the Cayman Islands, Luxembourg, Bermuda, and Ireland. Romney’s answer to any question about his taxes has basically been, “Trust me.” But the guy’s running for President, for Pete’s sake. He owes us more than that.”

They worry about wealthy peoples’ tax shelters (although they had no outcry when Ted Kennedy shielded his OWN estate from the inheritance taxes he demanded of everyone else).

They do not worry about illegal immigrants wiring HOME to Mexico billions of dollars annually (and then possibly leaching off welfare to make up the difference because they are POOR (by choice since they wired money out of the country)).

26
posted on 07/07/2012 2:36:01 PM PDT
by a fool in paradise
(Fools.Damn fools.Welcome to the USSA. Socialism is slavery to the State and the Supreme Court did it)

They do not worry about illegal immigrants wiring HOME to Mexico billions of dollars annually (and then possibly leaching off welfare to make up the difference because they are POOR (by choice since they wired money out of the country)).

We could annex Mexico as our 51st state, and keep the money in the country.

and the fact that he has $102 million in his IRA despite a contribution limit of $2000 per year for the entire 15 years Romney ran Bain

Doesn't everyone?

$102 million after 15 years with max contribution of $2000/year!! That's incredible!! I used to place tiny classified ads making $30 a week in thousands of newspapers all over the country and I could never do anything like that! He should be on TV advertising something like a seminar on how to make money by doing seminars.

Romney is just AMAZING!!

28
posted on 07/07/2012 2:40:12 PM PDT
by Maurice Tift
(You can't stop the signal, Mal. You can never stop the signal.)

“..why anyone would post an article that poses a question raised by a scum bag like Laurence ODonnell.”

EVERY article that contains something negative about Romney will get posted by the anti-Mormon-ism/anti-Romney group here at FR.

They so deeply despise “Mormon-ism” that they fail to realize that they are helping 0bama get re-elected. I guess it is their view that Commun-ism, Marx-ism or Social-ism is better for the country than Mormon-ism?

They fear that Romney is going to turn the U.S. into a Mormon controlled & dominated country. The Baptists, etc. thought the same about JFK turning us into a Catholic nation. That, we know, didn’t happen.

Romney was never my first choice, nor was he ever even on my ‘short-list’ to be President. I do know that we cannot withstand 4 more years of 0bama.

Im more concerned about what he will do with my money than what he did with his own.

Exactly. Maybe these flacks should use their investigative talents to find Zer0's college transcripts. Or social security card application. Or selective service registration. Or any number of other missing details in Zer0's past.

Zer0 controls the IRS. If there was anything questionable in the Mittster's tax returns, I'm sure they would manage to leak it to the press. And still might.

38
posted on 07/07/2012 3:25:20 PM PDT
by Vigilanteman
(Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)

That would be good advice. People have been advising him to do it since the subject first came up 6 months ago. He still hasn’t figured out a strategy to deal with it. He won’t confront it directly and it would be political malfeasance for the opposition party not to make hay with it. He’s playing into their hands.

That would be good advice. People have been advising him to do it since the subject first came up 6 months ago and he hasn’t listened. He still hasn’t figured out a strategy to deal with it. He won’t confront it directly and it would be political malfeasance for the opposition party not to make hay with it. He’s playing into their hands.

Barack 0bama had maxed out his credit card and could not rent a car to give the 2004 DNC speech everyone raved about. I don’t remember who paid the toll.

Next thing we know, he’s a US Senator and talking about twiddling gum in his seat there, just prior to running for President, having people running a campaign with a call center in Gazs and refusing public money...and disclosure.

If private citizen Romney wants to take advantage of tax laws to squeeze every dime out of his tax bill I say go for it. More power to ya.

But he isn’t private citizen Romney. He’s been telling us he is the BEST person in the country to run as the party’s nominee for years. That means he might have to be expected to make sacrifices private citizens don’t have to. He may not be able to take advantage of every tax loophole because it may loose you some important votes. You might not be able to maximize the gain on your assets.

But apparently he has not been willing to sacrifice a freaking thing. He wants it all and he want us to thank him for it.

Well NOBODY was begging him to be President. And if he isn’t willing to to do what it takes to be elected than to HELL with him. Let him drop out now.

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